Gas mileage reimbursement calculator helps you to compute your entitlement to gas mileage reimbursement as per the gas mileage reimbursement rates for 2020 announced by IRS in December. The calculator will also calculate for the tax year 2019.
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Gas mileage reimbursement calculator
Gas mileage reimbursement rate for 2020
For this year, the mileage rate in 2 categories have gone down from previous years:
- 57.5 cents per mile for business miles (58 cents in 2019)
- 17 cents per mile driven for medical or moving purposes (20 cents in 2019)
- 14 cents per mile driven in service of charitable organizations
You can claim mileage reimbursement only when you use your car, van, or truck to perform the duties of an employer company or organization. The IRS reimbursement rates, set annually, covers gas, insurance, plus wear and tear on the vehicle.
Reimbursement of mileage by the employer: consequences
Under the current law, employers are not compelled to reimburse employees for their business mileage expenditure. But they do many times for practical reasons. If they reimburse, you can not claim deduction while computing your taxable income. If your employer reimburses lower than the IRS rate, you can claim tax deduction up to the difference in costs. Similarly, if you are reimbursed higher than the IRS rate, the extra payments may be considered taxable income to the employee. Here are three situations and effect on mileage reimbursements
- The employer reimburses in full all mileage expense– You can not claim it as a tax deduction
- The employer reimburses less than the standard mileage rate – claim the difference in the cost as a deduction
- The employer does not reimburse – You can deduct the gas mileage reimbursement in full rates.
What is the form for gas mileage reimbursement?
There are two forms related to claim of gas mileage reimbursement –Form 2106-EZ and Form 2016.Both are for separate situations. Form 2106-EZ should be used if are adopting the standard mileage rate for your the deduction for work-related use of your personal vehicle . However, if you want to claim actual expenses for your work-related vehicle use Form 2106 is suitable.
You can not claim tax deduction for the mileage cost , if it does not exceed 2% of your adjusted gross income for the year.